Apple~ Neelakshwar Dey

Think Different

“ Your time is limited,so don’t waste it livingsomeone else’s life…”

The man who thought different

Behind every great thing there is always a humble thing

Where is Apple Located?• Apple has also expanded internationally

with locations in Cork, Ireland and Silicon Valley, Singapore.

Cork, Ireland Silicon Valley, Singapore

Where is Apple Located?• Apple has over 200 retail locations

across the U.S. To find a store nearest you, Apple’s main website provides a search engine that can provide that information.

Inception of Apple Institution

Steve Jobs

SteveWozniak

RonaldWayne

Apple’s Mission Statement“Apple designs Macs, the best personal computers

in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad.”

Apple’s Vision Statement “We believe that we are on the face of the earth to make great products and that’s not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self- honesty to admit when we’re wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.”

Frontrunner in the PC revolutionTransformed PC industry with 1st

MacExpansion in consumer technologyContinued innovation in tech

industry

Apple Inc.

Source: Apple

1976: Steve Jobs and Steve Wozniak founded Apple Computer, Inc.

1980: Apple converts to public ownership.

1982: Apple becomes first personal computer company to reach $1 billion in annual sales.

Key Dates

Source: Apple

1985: John Sculley assumes CEO role1997: Steve Jobs is named interim

CEO1998: The all-in-one iMac is released 2000: Jobs as CEO, more tightly

focused Apple, Inc.

Key Dates

Apple Inc.  currently operates in highly competitive and highly technological driven consumer electronics / computer industries.

There exists opportunities to further leverage the intellectual capital and brand

image along with new digital business strategies to create new sources of

sustainable competitive advantage within Apple Inc.

Opportunity Statement

Timeline of Apple Company

We’ve got to

make the

small things

unforgettable.

I would rather

gamble on our

vision than

make a ‘me,

too’ product.

Don’t just live a life, build one.

And if we want to be

great, we’ve got to risk it too.

Job’s Traits

Steve Job’s Methodology

Evolution of Apple Logo

History of Macintosh

Evolution of iMac

Evolution of Macbook

Evolution Of Mac Pro

Evolution of iPad

Evolution of iPhone

Bigger than bigger

Evolution of iPod

Inception of Apple TV

Mac mini It’s mini in a massive way.

Apple Wireless Keyboard

Magic Mouse

Magic Trackpad

AirPort family

Apple Pencil Completely familiar. Entirely revolutionary. Introducing Apple Pencil

iWatch

There’s an Apple Watch for everyone

iCloud

Box/Mac App Store artwork for OS X. Summit to bottom: 

Cheetah/Puma (1) Jaguar (2) 

Panther (3) Tiger (4)

Leopard(5)Snow Leopard (6)

Lion (7)Mountain Lion (8) 

Mavericks (9) Yosemite (10)

Mac OS X

Version Codename Date announced Release date Most recent versionRhapsody Developer Release Grail1Z4 / Titan1U August 31, 1997 DR2 (May 14, 1998)

Mac OS X Server 1.0 Hera March 16, 1999 1.2v3 (October 27, 2000)Mac OS X Developer Preview May 11, 1998[74] March 16, 1999 DP4 (April 5, 2000)

Public Beta Kodiak September 13, 2000

Mac OS X 10.0 Cheetah March 24, 2001 10.0.4 (June 22, 2001)

Mac OS X 10.1 Puma July 18, 2001[75] September 25, 2001 10.1.5 (June 6, 2002)

Mac OS X 10.2 Jaguar May 6, 2002[76] August 24, 2002 10.2.8 (October 3, 2003)

Mac OS X 10.3 Panther June 23, 2003[77] October 24, 2003 10.3.9 (April 15, 2005)

Mac OS X 10.4 Tiger May 4, 2004[78] April 29, 2005 10.4.11 (November 14, 2007)

Mac OS X 10.5 Leopard June 26, 2006[79] October 26, 2007 10.5.8 (August 5, 2009)

Mac OS X 10.6 Snow Leopard June 9, 2008[80] August 28, 2009 10.6.8 v1.1 (July 25, 2011)

Mac OS X 10.7 Lion October 20, 2010[81] July 20, 2011 10.7.5 (September 19, 2012)

OS X 10.8 Mountain Lion February 16, 2012[82] July 25, 2012[83] 10.8.5 (12F45) (October 3, 2013)

OS X 10.9 Mavericks June 10, 2013[84] October 22, 2013 10.9.5 (13F34) (September 18, 2014)[85]

OS X 10.10 Yosemite June 2, 2014 October 16, 2014 10.10.2 (14C109) (January 27, 2015)

Mac OS X version informationMac OS X version

iTunes

Music Store in the World

Compatible with PC or Mac

Turn CD’s into digital music files, plus purchase songs, movies, etc…on iTunes.

MusicMovie RentalsAudio booksFree PodcastsTV Shows iPod Games

The Situational Analysis Factors of Apple Inc.

Situational AnalysisInternal Factors

Leadership | Corporate CultureOperations | Marketing | Finance | HRM

Leadership

Situational AnalysisInternal Factors

LeadershipSteve Jobs–Co-Founder/CEO/Directoro1976-1985/1996-Present

College dropoutPerfectionistFounded company with Steve WozniakSource: Reuters

LeadershipPeter Oppenheimer–CFO/Senior VPo1996 - Present

Former CFO of Automatic Data Processing, Inc. (ADP)

IT Consulting firmSource: Reuters

LeadershipTimothy Cook–COOo1998 - Present

Previously VP Corporate Materials for Compaq Computer Corp. COO for Intelligent ElectronicsSource: Reuters

Corporate Culture

Situational AnalysisInternal Factors

Corporate Culture“Work hard, play hard” mentality

World’s Most Admired Company

Source: CNN: Money; ICMRIndia; Apple Insider

Greatest Corporate Presenter

“ You’ve got to have a problem that you want to solve; a wrong that you want to right.”“. Your audience needs to understand the problem your idea solves. Don’t leave them guessing. Explain it clearly.”

Operations

Situational AnalysisInternal Factors

Organizational Structure

Non-traditional - Team and department divisions- Very informal and non-hierarchical

Jobs still very much in control

Source: The Wall Street Journal; ICMRIndia; Apple Insider

OperationsCorporate headquarters in Cupertino,

CAMost manufacturing in China–Supplier code of conduct

Source: Apple

More than 200 stores worldwide

Operations

Source: Apple

Sales Breakdown

$ Million % of TotalU.S. 19,870 54Other Countries

16,667 46

Total 36,537 100

2009 Sales

Source: Apple

Sales Breakdown$ Million % of Total

Americas 16,142 44Europe 9,365 26Retail 6,574 18Japan 1,831 5Other 2,625 7Total 36,537 100

2009 Sales by Operating Segment

Source: Apple

Marketing

Situational AnalysisInternal Factors

Steve Jobs The underrated marketing genius Apple’s marketing strategy can be summed up in

one word: Empathy. “If we want to see Apple healthy again, we have to

let go of this notion that for Apple to win, Microsoft has to lose”

“A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets”

Marketing can be summarized as four P’s Products Price Place Promotion

Marketing - ProductApple Inc’s product strategy is:– Supply superior ease-to-use– Seamless integration– Innovative industrial design

Source: Apple

Marketing - ProductTwo main types of products:– Hardware

oPersonal computersoPortable devices

– SoftwareoiTunesoFinal Cut ProoLogic Studio

Source: Apple

Marketing - PriceValue based pricing modelVariable pricing for iTunesFixed pricing over all

“We don’t know how to make a $500 computer that’s not a piece of junk” - Steve Jobs

Source: Apple

Marketing - PlaceDistribution:– Sales Force– Third party wholesale

Source: Apple

Marketing - Place Distribution Channels:– Resellers– Large distribution– Online stores– No Franchises

Source: Apple

Marketing - PromotionPromotional techniques– “Test drive a Mac” 1983– iPod as contemporary art– Celebrity involvement

Source: Apple

Financial Analysis

Situational AnalysisInternal Factors

Financial News April 20, 2010: Apple announced fiscal 2010 Q2 results:- Revenue of $13.5 billion- Quarterly profits of $3.07 billion

Stock price $252.36/share Holds over $40 billion of cash reserves

Source: World of Apple; BusinessWeek; Hoovers

Short-Term Solvency Ratio

Current Ratio =Current Assets

Current Liabilities

2006 2007 2008 20090

0.5

1

1.5

2

2.5

3AppleMicrosoftDell

Source: Hoovers

Short-Term Solvency Ratio

Quick Ratio = Current Assets - Inventories

Current Liabilities

2006 2007 2008 20090

0.5

1

1.5

2

2.5

3 AppleMicrosoftDell

Source: Hoovers

Long-Term Solvency Ratio

Debt to Equity Ratio =Total LiabilitiesShareholders

Equity

2006 2007 2008 20090

1

2

3

4

5

6

7 AppleMicrosoftDell

Source: Hoovers

Efficiency Ratio

Receivables Turnover =Net Credit SalesAvg. Accounts

Receivable

2006 2007 2008 20090

0.51

1.52

2.53

3.54

4.5 AppleMicrosoftDell

Source: Hoovers

Comparative performance2nd Quarter,

2010Revenues $13.5 billionNet quarterly profit $3.07 billionCash Reserves $60 billion

2nd Quarter, 2013Revenues

$43.6 billionNet quarterly profit $9.5 billionCash Reserves $137.1 billion

Apple Vs Microsoft

Apple Vs Android

Apple Vs Samsung

Basic Financial Data

Basic Financial Data

Tax paid just $713 million last year on foreign profits of $36.8 billion at tax rate of 1.9 percent

Financial SummaryStrong RatiosPositive predictions for financial growthProfit margins leveling out

Human ResourceManagement

Situational AnalysisInternal Factors

Human Resource Management1. Recruiting

2. Hiring3. Training4. Retaining

HRMRecruiting

Online Universities Internships Apple Store Leader Program

Source: Apple

HRMHiring

Online applicationInterview ProcessEqual Employment OpportunityAffirmative Action

Source: Apple

HRMTraining

New Technology Career Advancement“Customers aren’t the only ones who get to discover new things at the Apple Retail Store. Every location provides regular training, which counts as work time, to keep you up to date on the latest Apple and third-party products. You can also get training to help you move ahead as a Genius, Creative, or Manager — or to transition to one of those tracks from your current position.” - Apple

Source: Apple

HRMRetaining

Fun, innovative work environment Possibility for career advancement Great BenefitsoHealth and Life Insurance

Source: Apple

HRMRetaining

Tuition Assistance Product Discounts Commuter Programs“Working at Apple is a whole different thing. Because whatever you do here, you play a part in creating some of the best-loved technology on the planet. And in helping people discover all the amazing things they can do with it. You could call it work, or you could call it a mission. We call it a blast.” - Apple

Source: Apple

Situational AnalysisExternal Factors

Competition | Technology | Customers Macro-economic Factors

Competition

Situational AnalysisExternal Factors

Direct CompetitionA product or brand that competes in the

same industry or product category– Hewlett – Packard – Dell– IBM

Source: Hewlett-Packard; Dell; IBM

Direct CompetitionMicrosoft – The employee empowerment– “At Microsoft, we believe that diversity

enriches our performance and products and…differences become increasingly important.”

Source: Microsoft

Indirect CompetitionProduct that provides an alternative

activity that one might choose over using Apple– Video Games – Television – Digital Video Disc (DVD)

Technology

Situational AnalysisExternal Factors

Technology Industry Trends– Tablet PC– Internet capabilities– Battery life– Compatibility

Customers

Situational AnalysisExternal Factors

CustomersVolatile Lack of perceived differentiationFUD (Fear, Uncertainty, and Doubt)Discrepancy with early & late adopters

MacroeconomicFactors

Situational AnalysisExternal Factors

Macroeconomic FactorsMoore’s Law

Current economic climateNatural disasters

Source: Intel; Businessweek

Apple Inc.SWOT Analysis

&Conclusion

SStrengths

Strong cash base Intellectual capitalTechnology leaderBrand imageCharismatic leadership iTunes Store

WWeaknesses

Lower profit marginsDividends rarely paid Lack of succession

planningPresence in business

arena Underdeveloped

customer relationships

OOpportunitie

sDigital business strategies

Customized user experience

Strengthen brandExpand strategic

allianceGlobal expansion

TThreats

TechnologyVolatile customersCompetition– Google

APPLE BRAND STRATEGY MODEL

The bite Apple took forward

The marketing strategy of Apple Inc.

Apple’s marketing has embraced the powers of scarcity and social proof. It goes all the way back to 1984’s “Big Brother” commercial. It spoke to an entire generation. Throw off your shackles. Break the status quo. Think different.Apple’s marketing feeds that first impression – Individuality.

Fragment by fragment they took it all

In the end, all business operations can be summarized as three P’s People Products Profits

Supply Chain Management SOURCE PLAN MAKE FULFILL SELL SUPPORT

World’s best supply chain management – 6th year in a row.What it does right?

It's all about demand management Oversight is crucial Procurement Logistics Make the investments

Operations Integration: Vertical integration Backward integration:

Control over Hardware development Forward integration:

Apple’s Retail Stores

Partner of Apple Inc.

Apple Store412 retail stores in 14 countries$16 billion in merchandise42,200 workforce worldwideGenerates about $420,000 of annual salesMore money per square foot than any other

United States retailer

Timothy Donald “Tim” CookC.E.O.

Polished gentlemanGroundedConcern about

EmployeesPhilanthropic

Apple’s performance after Steve Jobs bereavement

Stock price from 2012

A turning point in stock price after Steve Jobs bereavement

Reasons for backslide in stock price

iphone 5 was something of a disappointment

The Maps app fiasco The growth of the cloud trendPerception that apple isn’t forward thinking

anymoreMarket share of apple declining in smart

phones and tablets

ICONOCLAST

INVENTOR

VISIONARY

GENIUS

ADOPTED

DROPOUT

FIRED

Steve Jobs

This is his story.